Lost or stolen credit card? Here are 6 steps to follow to avoid financial loss

Losing your credit card or discovering that it has been stolen can be psychologically difficult to deal with. The imminent risk of unauthorised transactions, financial crimes, and fund loss can put a lot of stress on the cardholder.

In today’s rapidly evolving digital banking ecosystem, even a few minutes' delay in reporting such a happening, i.e., a theft of a credit card, can result in misuse of the credit card and the holder suffering serious financial damage.

The key to combat such situations is to act quickly, stay calm and composed, and follow a clearly defined process to minimise losses and protect your credit card account and financial integrity. Keeping these essentials in mind, here are the important steps you should follow if your credit card is stolen, lost, or missing.

6 steps to follow if your credit card is stolen or lost

1. Block your credit card immediately

The first and most vital step is to block your credit card immediately. You can do this in three ways:

(i) by using your bank's mobile application.

(ii) by logging in to your internet banking.

(iii) by calling the customer service team of your bank.

You should try all three ways to the best of your ability, without losing time. This will instantly reduce the risk of your credit card being lost or stolen, as any further transactions will be blocked.

2. Check recent transactions carefully

Even if your credit card is successfully blocked, you should check recent transactions, SMS alerts and email notifications, as well as the history of your banking application. If the card is stolen, you should naturally assume that misuse has already occurred or that the thief has already tried to use it. Track the details and don't leave anything to chance. To narrow down possibilities, track down the last transaction you made and match the data.

3. Inform your bank and raise a complaint

Make sure that you report the issue to your banking institution officially and obtain a complaint reference number. This number will help you track and closely follow the case. It might even be essential to track this in case of a legal dispute later on. In such cases, it is always better to file written complaints and keep a copy for future reference.

4. Dispute unauthorised transactions

In case you do find fraudulent charges, raise a dispute on an immediate basis. Banking institutions often have policies with zero or limited liability. These policies are only beneficial if the loss is reported promptly. Especially in cases of theft. If in doubt, read the terms and conditions of your credit card carefully and discuss the problem with your respective customer service representatives.

5. Secure your digital accounts

Change all your passkeys, passwords and other confidential information for your banking application, email, and payment wallets. Make sure you enable two-factor authentication and transaction alerts to boost the security of your credit card and banking accounts.

6. Request for a replacement card

Once you are done with the process of blocking, tracking, reporting and resolving your credit card issue, you should proceed to apply for a new credit card with a fresh number and security code. Make sure that the old card is fully blocked and the problem is completely resolved before activating the new credit card.

File an FIR and keep the original copy with you

Once you follow the above steps diligently, don’t stop. It is critical that you formalise the incident. In case your credit card is stolen, you should file a First Information Report at your nearest police station and keep the original copy of the report with you.

This copy might be needed later on for dispute resolution or insurance claims. Keep details such as original FIR, bank complaint reference number, original credit card details, other supporting documents and related correspondence safely stored on your laptop. These records will act as proof and help protect you from future economic losses and liability.

Disclaimer: MintMoney has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. MintMoney does not promote or encourage taking credit, as it comes with a set of risks, such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.

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